According to a report from the Center of Medicare Services, over half of healthcare spending is set to come from federal and state governments by 2012. That’s even if health insurance reform is not enacted. They blame the increasing number of baby boomers aging and therefore becoming eligible for Medicare insurance, as well as the recession. The latter is at fault for leaving millions out of work and without employer-sponsored health insurance (meanwhile unable to afford short term health insurance), causing them to then apply for Medicaid.
The reality could be even worse! The report assumes that a long-planned cut in Medicare’s reimbursements to doctors would take effect next year. Instead, physicians cried foul and the 20% reduction was shelved. Such a reduction would force private health insurance companies to pick up the slack. The premiums of temporary health insurance and other types of insurance would increase as a result.
Many are understandably concerned about the Obama administration’s healthcare reform proposals. Some people believe that there is the potential decreased quality of health care if the government is more deeply involved in providing health insurance. However, this new research ignores the pending legislation altogether. Granted, the Democratic-led reforms could lead to an even larger share of government spending. Either way, taxpayers will be contributing more towards health insurance costs.
